20120801 six figure debt

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Student Aid Policy Analysis

Who Graduates College with Six-Figure Student Loan Debt?

Mark KantrowitzPublisher of Fastweb.com and FinAid.org

August 1, 2012

News media sometimes run stories about students who graduated with six-figure student loan debt.1

Articles about borrowers with six-figure student loan debt have appeared in Businessweek, Chronicle of

Higher Education (2 articles), CNN (2 articles), Huffington Post, Miami New Times, Money Magazine,

New York Times (3 articles), NPR (2 articles), San Francisco Chronicle and Wall Street Journal (3

articles), among other publications.2 These stories have shock value and sensationalize the student debt

problem, but the borrowers depicted in these stories are not representative of typical college graduates.

Most undergraduate students graduate with an affordable amount of debt, with less that 10% of college

graduates having total student loan debt exceeding their annual income. The average debt at graduation

for Bachelor’s degree recipients in 2011 was about $27,000, about the cost of a new car.

Nevertheless, much can be learned by examining extreme examples. Extrema can help identify the

strengths and weaknesses of the student loan system. A previous paper reviewed the characteristics of

students who graduate with no debt.3 This paper analyzes the characteristics of students who graduate

with an extreme amount of debt, in excess of $100,000.

The key findings in this report are as follows:

• Overall, 1.5% of all undergraduate and graduate students graduated with six-figure student loandebt in 2007-08, involving 0.2% of undergraduate students and 6.4% of graduate students. Morethan 95% of the undergraduate students were Bachelor's degree recipients. Six-figure student loandebt is more common among graduate students. 2.6% of Master's degree recipients, 9.7% of

doctoral degree recipients, 36.2% of law school graduates and 49.0% of medical school graduatesgraduated with six-figure debt.

• Among the students graduating with six-figure student loan debt, 10% were undergraduatestudents and 90% were graduate and professional students.

• Less than half of dependent undergraduate students who graduate with six-figure student loandebt do so because their parents are unable or unwilling to borrow from the Parent PLUS loanprogram. Some parents even borrowed $100,000 or more in Parent PLUS loans.

• Students graduating from more expensive colleges are more likely to graduate with six-figurestudent loan debt.

• More than half of undergraduate students who graduate with six-figure student loan debt attended

the most selective colleges and universities.

• Nearly three-quarters (72%) of undergraduate students graduating with six-figure student loandebt graduated from non-profit colleges, even though non-profit colleges represent only 17% of

1 This paper concerns debt at graduation. Student loan debt can also grow to six figures through an extended period of non-payment.

2A full list of the articles may be found in the appendix at the end of this student aid policy analysis paper.

3Mark Kantrowitz, Characteristics of College Students Who Graduate with No Debt , August 24, 2011.

http://www.finaid.org/loans/20110824graduatingwithoutdebt.pdf

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total undergraduate student enrollment. A quarter (24%) of undergraduate students with six-figurestudent loan debt graduated from public colleges and 3% from for-profit colleges.

• Undergraduate students for whom the ratio of net price to total family income is 18% or more arefour times more likely to graduate with six-figure student loan debt.

• Undergraduate students majoring in theology, architecture and history are more likely to graduate

with six-figure student loan debt and undergraduate students majoring in computer science,mathematics and health care are less likely to graduate with six-figure student loan debt.

• High-income students are more likely to graduate with six-figure student loan debt and low-income students are less likely to graduate with six-figure student loan debt than students frommiddle-income families.

• Students who borrow from private student loan programs are more likely to graduate with six-figure student loan debt.

RECOMMENDATIONS

This report makes the following recommendations:

• Increasing awareness of student loan debt is the first step in helping students and their families toborrow less. College cost and financial aid disclosures must clearly distinguish between grantsand loans. Financial aid award letters should also provide the family with a summary of thestudent’s cumulative student loan debt and a projection of the student’s debt at graduation, alongwith figures for the corresponding monthly loan payments (assuming a 10-year repayment term).Colleges should tell students when they are borrowing excessively as compared with their peersand/or absolute standards concerning affordable debt. It would also be helpful to provide studentswith a one-page statement summarizing the growth in the cumulative loan balances due to interestaccrual at the end of each semester or even once a month throughout the year.

• But better disclosures are not enough. Students (and parents) also need to learn the skillsnecessary to interpret the disclosures and make smarter borrowing decisions. Financial literacy

training must be incorporated into the secondary school curriculum. Colleges should also requirenew students to participate in a financial literacy mini-course during orientation. Students who areborrowing excessively should be subjected to additional debt counseling. Financial literacytraining should also be made available to parents and educators, since a “teach the teachers”approach is often the most effective. Financial literacy training will also help students becomemore successful in life by teaching them practical money management skills.

• The federal government also needs to increase its awareness of stresses in the student loan systemthrough better monitoring of basic heartbeat statistics. The US Department of Education shouldtrack and publish more information about student loan debt, such as college-specific delinquency,deferment and forbearance rates, repayment plan utilization and average debt at graduationfigures (disaggregated by degree level). In addition to tracking the short-term cohort default rate,the federal government should also track and publish a more long-term measure, such as thepercentage of the outstanding student loan portfolio dollar volume that defaults each year (overalland for each college). The National Student Loan Data System (NSLDS) should be expanded toinclude information about private student loans borrowed by all students.

• The federal and state governments must increase their investment in postsecondary education.When grants fail to keep pace with increases in college costs, some students graduate withthousands of dollars of additional debt, some students shift enrollment to lower-cost colleges andsome students are priced out of a college education. These problems manifest themselves firstamong low and moderate income students. Cutting federal and state support of postsecondary

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education is short-sighted. For example, people who have Bachelor’s degrees pay more thantwice as much federal income tax as people who have just a high school diploma.

• The exception to discharge for federal and private student loans should be repealed to enablefinancially distressed borrowers to obtain a clean slate. The prospect of losing loans tobankruptcy discharge will force lenders to offer struggling borrowers more options for

meaningful financial relief. It will also encourage lenders to adopt more rational creditunderwriting criteria that will prevent borrowers from graduating with excessive debt.

• Aggregate student loan limits should be pegged to a moving average of annual starting salariesbased on the degree level and field of study, rounded up to the nearest $5,000.4 Annual loan limitsshould be based on the aggregate loan limits divided by 150% of the normal timeframe for theprogram.5 Annual loan limits should also be prorated based on enrollment status, so that part-timestudents cannot borrow the same amount as full-time students. The loan limits should be based onUS Census Bureau data and/or Bureau of Labor Statistics data.

METHODOLOGY

The analysis in this report was performed using the data analysis systems for the 1992-93, 1995-96, 1999-

00, 2003-04 and 2007-08 National Postsecondary Student Aid Study (NPSAS). The NPSAS is a large,statistically significant survey of undergraduate and graduate students to determine how they paid for

college. The NPSAS is conducted every four years by the National Center for Education Statistics

(NCES) at the US Department of Education. The 2007-08 NPSAS surveyed a nationally-representative

stratified sample of more than 114,000 undergraduate students and 14,000 graduate and professional

students. The 2003-04 NPSAS surveyed 80,000 undergraduate students and 11,000 graduate and

professional students. The 1999-00 NPSAS surveyed 50,000 undergraduate students and 12,000 graduate

and professional students. The 1995-96 NPSAS surveyed 41,400 undergraduate students and 7,000

graduate and professional students. The 1992-93 NPSAS surveyed 52,000 undergraduate students and

14,000 graduate and professional students.

TRENDS IN SIX-FIGURE DEBT

Very few students graduate with six-figure student

loan debt. In 2007-08, 0.2% of undergraduate students

and 6.4% of graduate and professional students

graduated with six-figure student loan debt. Graduate

students in medical school or law school are much

more likely to graduate with six-figure student loan

debt than students in PhD programs or Master’s

degree programs. Two-thirds (66.6%) of graduate

students graduating with six-figure student loan debt

graduated with a doctoral or professional degree, with

professional degrees accounting for almost half (48.5%) of the total. Of 2007-08 Bachelor’s degree

recipients, 0.2% (7,500) graduated with six-figure

4 A moving average will smooth out volatility from one year to the next.

5 The current collection of student and parent loans would be replaced with a single loan that could be borrowed by students and/or parents

with a single combined annual and aggregate limit. Education loan limits would be based on average projections of ability to repay the debt

after graduation, not college costs.

Degree (2007-08)

Graduated with Six-Figure

Student Loan Debt

Certificate 0.01%

Associate’s Degree 0.02%

Bachelor’s Degree 0.3%

Master’s Degree 2.6%

MBA 2.8%

Doctoral Degree 9.7%

Professional Degree 39.1%

Law (LLB or JD) 36.2%

Medicine (MD) 49.0%

Overall 1.5%

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debt, 0.04% (1,900) had parents borrowing $100,000 or more for their undergraduate education and 0.2%

(9,000) graduated with either student loans or parent loans in excess of $100,000 or both.

Only about three-fifths of undergraduate students who graduate with six-figure student loan debt do so

because their parents are unable or unwilling to borrow from the Parent PLUS loan program. In 2007-08,

38.6% of undergraduate students graduating with six-figure debt had parents who borrowed from the

Parent PLUS loan program (40.3% of Bachelor’s degree recipients), with an average debt of $50,144. In

fact, 4.1% of them (4.3% of Bachelor’s degree recipients) had parents who borrowed $100,000 or more in

addition to the student’s six-figure debt. If the data is restricted to dependent students, since independent

students are ineligible for the Parent PLUS loan, 51.3% of dependent undergraduate students with six-

figure debt had parents borrowing from the Parent PLUS loan program and 5.9% had parents borrowing

$100,000 or more in addition to the student’s six-figure debt.6 Students whose parents borrow from the

Parent PLUS loan program are almost six times more likely to graduate with six-figure student loan debt.

Degree Level

In 2007-08, only about 10% of borrowers with six-figure student loan debt at graduation had graduated

with an undergraduate degree; 90% graduated from graduate and professional school. 95.6% of theundergraduate students with six-figure debt graduated with Bachelor’s degrees, while 3.7% graduated

with Associate’s degrees and 0.6% graduated with certificates. The following table and graph show the

trends in six-figure debt by degree level from 1992-93 to 2007-08.

Six-Figure Student Loan Debt

Year

Undergraduate

Students

Graduate

Students

(U+G Debt)

Percent

Undergraduate1992-93 0 3,000 0%

1995-96 0 3,300 0%

1999-00 0 21,200 0%

2003-04 2,400 51,100 4%

2007-08 7,800 70,800 10%

6The figures for Bachelor’s degree recipients are identical.

0

10000

20000

30000

40000

50000

60000

70000

80000

1992-93 1995-96 1999-00 2003-04 2007-08

Number of Students Graduating with Six-Figure Debt

Undergraduate Students Graduate Students (U+G Debt)

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Cost of Attendance

The percentage of students graduati

cost of attendance. More than three

debt attended colleges with a cost o

of Bachelor’s degree recipients wit

The next chart shows the percentag

loan debt by the cost of attendance i

$30K to $40K

31%

$40K to $50K

29%

Distribution o

Student L

0.1%

0.0%

0.5%

1.0%

1.5%

2.0%

< $10K $

Perce

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ng with six-figure student loan debt correlates well

fifths of Bachelor’s degree recipients who graduate

f attendance of $30,000 or more. The first chart sho

six-figure student loan debt by cost of attendance.

of Bachelor’s degree recipients who graduate with

n $10,000 increments.

< $10

11%

$10K to8

$20K to $3

18%

$50K+

3%

Bachelor's Degree Recipients with Six-Figure

an Debt by Cost of Attendance, 2007-08

0.1%

0.4%

1.1%

1.7%1.8%

10K to

$20K

$20K to

$30K

$30K to

$40K

$40K to

$50K

$50K

Cost of Attendance

tage of Bachelor's Degree Recipients

ith Six-Figure Student Loan Debt

ith the college’s

with six-figure

s the distribution

six-figure student

K

$20K

0K

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The next chart shows the percentag

student loan debt by the cost of atte

Type of College

Students graduating with six-figure

colleges than from public or for-pro

graduating with six-figure student l

colleges represent only 17% of the

profit colleges are 12 times more li

students at public colleges and 17 tiundergraduate students at for-profit

students with six-figure student loa

1.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

< $10K

Perce

with

Non-Profit

73%

Distribution

Student L

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of graduate and professional students who graduat

dance in $10,000 increments.

student loan debt are much more likely to graduate

fit colleges. Nearly three-quarters (72.3%) of under

an debt graduated from non-profit colleges, even th

ndergraduate student enrollment. Undergraduate st

ely to graduate with six-figure student loan debt th

mes more likely to graduate with six-figure studentcolleges. The next chart shows the distribution of u

debt by control of institution.

1.8%

5.4%

8.9%

18.4%

27.5

$10K to

$20K

$20K to

$30K

$30K to

$40K

$40K to

$50K

$50K

Cost of Attendance

ntage of Graduate Degree Recipients

Six-Figure Student Loan Debt (U + G)

Public

24%

For-Profit

3%

of Undergraduate Students with Six-Figure

an Debt by Institutional Control, 2007-08

with six-figure

from non-profit

raduate students

ough non-profit

dents at non-

n undergraduate

loan debt thandergraduate

+

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There is a similar trend with students graduating from graduate and professional school, but not as

extreme. Three-fifths (60.0%) of graduate students graduating with six-figure student loan debt graduated

from non-profit colleges, even though non-profit colleges represent only 41.7% of the graduate student

enrollment. Graduate students at non-profit colleges are twice as likely to graduate with six-figure student

loan debt as graduate students at public or for-profit colleges. The next chart shows the distribution of

graduate students with six-figure student loan debt by control of institution.

Among undergraduate students, almost all (99.4%) of the students graduating with six-figure student loan

debt were enrolled at 4-year colleges. No students graduated from 2-year colleges with six-figure debt,

and a very small percentage of students graduated with six-figure debt from less than 2-year institutions.

Almost three quarters (72.3%) of students with six-figure debt graduated from non-profit 4-year colleges,

almost a quarter (24.3%) graduated from public 4-year colleges, and a small percentage (2.7%) graduatedfrom for-profit 4-year colleges. The rest, 0.6%, graduated from less than 2-year for-profit colleges.

Students graduating from non-profit 4-year colleges are six times as likely to graduate with six-figure

student loan debt as students graduating from public 4-year colleges or for-profit 4-year colleges.

Institutional Selectivity

Students who attend the most selective colleges and universities are more likely to graduate with six-

figure debt. Of undergraduate students who graduate with six-figure debt, half (50.6%) graduate from

very selective colleges and universities, almost two fifths (37.7%) graduate from moderately selective

institutions, 4.4% graduate from minimally selective institutions, 4.0% graduate from open admission

colleges and 3.3% graduate from for-profit colleges. Students who graduate from a very selective or

moderately selective institution are ten times as likely to graduate with six-figure debt as students whograduate from less selective institutions.

GPA and Test Scores

Students with a higher high school GPA and admissions test scores are more likely to graduate from

college with six-figure student loan debt. This may be due in part to enrollment at more selective colleges

and universities.

Public

36%

Non-Profit

60%

For-Profit

4%

Distribution of Graduate Students with Six-Figure

Student Loan Debt by Institutional Control, 2007-08

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Of undergraduate students who graduated with six-figure student loan debt, more than half (55.4%) had a

high school GPA of 3.5 to 4.0 on a 4.0 scale and more than a third (35.1%) had a high school GPA of 3.0

to 3.4 on a 4.0 scale, accounting for more than 90% of students graduating with six-figure debt. These

students are more than twice as likely to graduate with six-figure student loan debt.

Of undergraduate students who graduated with six-figure student loan debt, a third (34.0%) had combined

SAT scores (or ACT equivalents) of 1200 or more on a 1600 scale, compared with a tenth (11.3%) of

students who did not graduate with six-figure debt. Similarly, a third (32.1%) of students who graduated

with six-figure debt had SAT scores under 1000, compared with two-thirds (66.9%) of students who did

not graduate with six-figure debt. Students with a combined SAT score of 1200 or more are six times as

likely to graduate with six-figure debt as students with a combined SAT score under 1000.

Enrollment Status

Of undergraduate students who graduated with six-figure debt who were enrolled in the fall, 92% were

enrolled full-time and 8% were enrolled part-time. Students who were enrolled full-time are almost five

times as likely to graduate with six-figure debt as students who were enrolled part-time.

Field of Study

Undergraduate students majoring in theology, architecture and history are much more likely to graduate

with six-figure student loan debt than students majoring in other fields of study. Undergraduate students

majoring in computer science, mathematics and health care are least likely to graduate with six-figure

student loan debt.

About two-fifths (40.8%) of undergraduate students who graduate with six-figure student loan debt had

changed their majors, compared with about a quarter (27.3%) of students who graduated with less debt.

Students who change majors are almost twice as likely to graduate with six-figure student loan debt as

students who never changed majors. (Students who transfer, however, are a third less likely to graduate

with six-figure student loan debt.)

Student Employment

Of undergraduate students who graduated with six-figure student loan debt, about half (48.4%) worked 12

or fewer hours per week and about half (51.6%) worked more than 12 hours per week. Students who

worked more than 12 hours per week were half as likely to graduate with six-figure debt, presumably

because the extra income reduced the need to borrow. Similar results occur when comparing students who

work 40 or more hours per week with students who work 12 or fewer hours per week. However, students

who work full-time while enrolled in college are also half as likely to graduate within six years.

Geographical Distribution

Undergraduate students attending colleges and universities in Alabama, Connecticut, Delaware,

Massachusetts, Michigan, New Hampshire, New Jersey and Pennsylvania are more likely to graduate

with six-figure debt, accounting for more than half of undergraduate students graduate students

graduating with six-figure debt in 2007-08.7 Similarly, undergraduate students attending colleges and

7The sample stratification in the 2007-08 National Postsecondary Student Aid Study was not designed to be

statistically significant except in six states – California, Georgia, Illinois, Minnesota, New York and Texas. So the

results for the eight indicated states are not necessarily significant when considered individually. However,

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universities in the New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont) and Mideast (Delaware, Washington DC, Maryland, New Jersey, New York and Pennsylvania)

regions are more likely to graduate with six-figure debt.8

Siblings in College

Nearly half (49.5%) of undergraduate students graduating with six-figure student loan debt had siblings incollege, compared with 35.9% of undergraduate students graduating with less debt. Students with siblings

in college were 1.75 times as likely to graduate with six-figure student loan debt as students who did not

have siblings in college. This suggests that the greater financial burdens associated with having multiple

children in college at the same time may contribute to excessive borrowing, despite the federal need

analysis formula dividing the parental contribution by the number of children in college. Gapping and the

tendency for financial need to be met with loans may be factors leading to increased debt when a family

has two or more children enrolled in college at the same time.

Parent Marital Status

Of undergraduate students who graduated with six-figure student loan debt, nearly four fifths (78.3%) of

their parents were married and one fifth (21.6%) were divorced. Almost none had parents who were

single or widowed.

Parent Highest Education Level

First-generation college students, who are the first in their family to pursue a Bachelor's degree, are less

likely to graduate with six-figure student loan debt. Of students graduating with a Bachelor's degree in

2007-08, the parent's highest educational level was below a Bachelor's degree for 48.9%. These students

represented 41.3% of Bachelor's degree recipients graduating with six-figure student loan debt.

Of all undergraduate students who graduated with six-figure student loan debt, not just those receiving a

Bachelor’s degree, more than half (56.1%) of their parents had at least a Bachelor’s degree, compared

with two fifths (39.7%) of students who graduated with less debt. Students whose parents had at least a

Bachelor’s degree were twice as likely to graduate with six-figure student loan debt as students whose

parents did not have a Bachelor’s degree.

Since family income correlates with parent education, first-generation college students are more likely to

enroll in lower-cost colleges.

Veterans

Veterans are somewhat less likely to graduate with six-figure student loan debt, representing 2.1% of

undergraduate students who graduate with six-figure debt and 2.9% of undergraduate students who

graduate with less debt.

collectively the eight states account for 14.1% of college graduates and 50.2% of undergraduate students

graduating with six-figure student loan debt, and this result is statistically significant.8

Each region is statistically significant when considered separately. The New England region accounts for 3.9% of

the undergraduate student population but 17.6% of the undergraduate students graduating with six-figure debt.

The Mideast region accounts for 15% of the undergraduate student population but 29.5% of the undergraduate

students graduating with six-figure debt. Together these two regions account for 18.9% of the undergraduate

student population and 47.1% of the undergraduate students graduating with six-figure debt.

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Race

Overall, minority students are slightly less likely to graduate with six-figure debt as Caucasian students,

representing 31.7% of undergraduate students who graduate with six-figure debt and 37.3% of

undergraduate students who graduate with less debt. The main exceptions are Asian students and students

of more than one race, who are more likely to graduate with six-figure debt.

Ratio of Net Price to Total Income

The ratio of net price to total income is a useful measure of college affordability.9

Undergraduate students for whom the college affordability ratio is 18% or more are four times as likely to

graduate with six-figure student loan debt as undergraduate students with a lower college affordability

ratio. Students at colleges with a college affordability ratio under 18% represent 14.8% of students who

graduate with six-figure student loan debt and 41.0% of students who graduate with less debt.

Filed the FAFSA

Among undergraduate students who graduate with six-figure student loan debt, almost four-fifths (78.5%)filed the Free Application for Federal Student Aid (FAFSA), compared with three-fifths (59.5%) of

students who graduated with less debt. Students who file the FAFSA are more than twice as likely to

graduate with six-figure debt as students who do not file the FAFSA. Filing a FAFSA is a prerequisite for

borrowing from federal student loan programs, so students who file the FAFSA have access to more

forms of education financing than students who do not file the FAFSA.10

Adjusted Gross Income (AGI)

High-income students are more likely to graduate with six-figure student loan debt and low-income

students are less likely to graduate with six-figure student loan debt. Among undergraduate students who

graduate with six-figure student loan debt, almost a third (32.2%) have family income of $100,000 or

more, compared with 14.5% of students who graduate with less debt. Four-fifths (40.2%) of undergraduate students who graduate with six-figure debt have family income under $50,000, compared

with three-fifths (58.8%) of students who graduate with less debt. A quarter (27.6%) of undergraduate

students who graduate with six-figure debt have family income of $50,000 to $100,000, similar to the

percentage (26.7%) of students who graduate with less debt.

Borrowed Private Student Loans

It is not possible for an undergraduate student to graduate with six-figure student loan debt with just

federal student loans, since the aggregate limit on the Stafford loan is $31,000 for dependent

undergraduate students and $57,500 for independent undergraduate students. For an undergraduate

student to graduate with six-figure student loan debt, as opposed to parent loan debt, the student mustnecessarily have borrowed from private student loan programs.

9When disaggregating data by institution level, an improved college affordability ratio multiplies the ratio of net

price to total income by the length of the educational program.10

A FAFSA has always been required for the Perkins, Stafford and Grad PLUS loans. The US Department of

Education began requiring a FAFSA for the Parent PLUS loan starting with the 2011-12 award year that began on

July 1, 2011.

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So 100% of undergraduate students who graduate with six-figure debt graduate with some private student

loan debt. Of undergraduate students who graduate with six-figure student loan debt, three quarters

(72.2%) borrowed private student loans during the senior year. Undergraduate students who borrow

private student loans during the senior year are 12 times as likely to graduate with six-figure student loan

debt as students who do not borrow private student loans during the senior year.

Graduate and professional students, on the other hand, can graduate with six-figure student loan debt

without relying on private student loans, since the annual limit on the Grad PLUS loan is up to the full

cost of attendance minus other aid received.11 The annual limit on the Stafford loan is also more generous

for graduate and professional students, allowing them to borrow up to $20,500 per year ($40,500 for

certain medical school programs). Almost a quarter (22.8%) of graduate and professional students who

graduated with six-figure student loan debt did so without borrowing from private student loan programs.

More than three quarters (77.2%) borrowed from private student loan programs. Graduate students who

borrowed from private student loan programs were almost five times as likely to graduate with six-figure

student loan debt.12

Of students who graduate with six-figure debt, most borrow both federal and private student loans. Very

few students borrowed only private student loans. 14.0% of undergraduate students and 1.4% of graduatestudents who graduated with six-figure student loan debt did not borrow federal student loans.

Dependency Status

Dependent undergraduate students are almost three times as likely to graduate with six-figure student loan

debt as independent students. Among undergraduate students who graduate with six-figure student loan

debt, more than two-thirds (70.7%) are dependent, compared with less than half (46.5%) of students who

graduate with less debt. This trend occurs despite dependent students having lower aggregate Stafford

loan limits than independent students. Most of the independent undergraduate students who graduate with

six-figure student loan debt are unmarried and do not have dependents other than a spouse.

Expect Help Repaying Student Loans

Almost half (46.6%) of undergraduate students with six-figure debt expect help repaying their student

loans, compared with nearly a fifth (18.4%) of students who graduated with less debt. They are 2.5 times

as likely to expect help repaying their student loans.

11 The Grad PLUS loan program became available on July 1, 2006. Thus the 2007-08 National Postsecondary

Student Aid Study (NPSAS) is based on two years of Grad PLUS loan availability. The percentage of graduate and

professional students borrowing from the Grad PLUS loan program will have increased since then. Some graduate

students who had borrowed from private student loan programs in 2005-06 continued borrowing from private

student loan programs instead of switching to the Grad PLUS loan program. New graduate students were much

more likely to borrow from the Grad PLUS loan program. So adoption of the Grad PLUS loan program increased

with each year’s incoming class.12

Bar study and residency/relocation loans are not included in these figures, since these loans are borrowed after

graduation.

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APPENDIX

This table lists examples of articles about students graduating with excessive student loan debt, in many

cases in excess of $100,000.

Publication Article

Businessweek Janet Lorin, Indentured Students Rise as Loans Corrode College Ticket , Bloomberg Businessweek, July

9, 2012. http://www.businessweek.com/news/2012-07-09/indentured-students-rise-as-loans-

corrode-college-ticket

Chronicle of Higher Education Beckie Supiano, When Life Gets in the Way of Paying for College, Chronicle of Higher Education,

January 30, 2011. http://chronicle.com/article/When-Life-Gets-in-the-Way-of/126082/

Eric Hoover, Debt Protesters Denounce Colleges for Broken Promises, Chronicle of Higher Education,

November 27, 2011. http://chronicle.com/article/Debt-Protesters-Lament-Higher/129902/

CNN Alina Cho, The Cost of College: Dream school, nightmare debt , CNN, May 25, 2010.

http://am.blogs.cnn.com/2010/05/25/the-cost-of-college-dream-school-nightmare-debt/

Blake Ellis, Extreme debtors, CNN, August 4, 2011.

http://money.cnn.com/galleries/2011/pf/1108/gallery.extreme_debt/index.html

Huffington Post Kelli Space, $200,000 In Debt, Starts Site To Solicit Donations, Huffington Post, November 22, 2010.http://www.huffingtonpost.com/2010/11/22/kelli-space-two-hundred-thousand-in-

debt_n_787074.html

Miami New Times Kyle Munzenrieder, Marco Rubio Still Has More Than $100,000 in Student Loans, Miami New Times,

June 14, 2012.

http://blogs.miaminewtimes.com/riptide/2012/06/marco_rubio_still_has_more_tha.php

Money Magazine George Mannes, Take control of college debt , Money Magazine, August 30, 2006.

http://money.cnn.com/magazines/moneymag/moneymag_archive/2006/09/01/8384574/index.htm

New York Times Jonathan D. Glater, Finding Debt a Bigger Hurdle Than Bar Exam, New York Times, July 1, 2009.

http://www.nytimes.com/2009/07/02/business/02lawyer.html

Ron Lieber, Placing the Blame as Students Are Buried in Debt , New York Times, May 28, 2010.

http://www.nytimes.com/2010/05/29/your-money/student-loans/29money.html

Andrew Martin and Andrew W. Lehren, A Generation Hobbled by the Soaring Cost of College,

Degrees of Debt , New York Times, May 12, 2012.

http://www.nytimes.com/2012/05/13/business/student-loans-weighing-down-a-generation-with-

heavy-debt.html

NPR Robin Young, Graduating College With $120K In Student Loan Debt , "Here and Now", NPR, WBUR

90.9 FM Boston, May 15, 2012. http://hereandnow.wbur.org/2012/05/15/student-loans-debt

Jennifer Ludden, Call Me Maybe When Your School Loan Is Paid In Full , “All Things Considered”, NPR,

July 16, 2012. http://www.npr.org/2012/07/16/156736915/call-me-maybe-when-your-school-loan-

is-paid-in-full

San Francisco Chronicle Kathleen Pender, Question of the day: Any options for a starving artist with $80,000 in private

student loans? , San Francisco Chronicle, August 21, 2009.

http://blog.sfgate.com/pender/2009/08/21/question-of-the-day-any-options-for-a-starving-artist-

with-80000-in-private-student-loans/

Wall Street Journal Mary Pilon, The $555,000 Student-Loan Burden, Wall Street Journal, February 13, 2010.

http://online.wsj.com/article/SB20001424052748703389004575033063806327030.html

Jon Hilsenrath, Student Loan Debt Hits Home for Bernanke, Wall Street Journal, February 29, 2012.

http://blogs.wsj.com/economics/2012/02/29/student-loan-debt-hits-home-for-bernanke/

Josh Mitchell, Student Debt Hits The Middle-Aged , Wall Street Journal, July 17, 2012.

http://online.wsj.com/article/SB10001424052702303612804577533332860797886.html

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